As defined in the Checkersrallys FDD, what is considered the 'Premises' for the operation of a Franchised Restaurant?

According to Checkersrallys's 2025 Franchise Disclosure Document, the "Premises" is defined as the location for operating the franchised restaurant. This location is chosen by the franchisee but must receive written approval from Checkersrallys. The specific location will then be identified in Exhibit B of the franchise agreement.

This means that a prospective Checkersrallys franchisee cannot simply choose any location they want. They must propose a site to Checkersrallys, and Checkersrallys must give its written consent. This approval process likely involves Checkersrallys evaluating the site based on its own criteria, such as demographics, traffic patterns, and competition. The approved location is then formally documented in Exhibit B of the franchise agreement, making it the official "Premises" for the restaurant.

The franchisee is granted the right and obligation to operate the Checkersrallys restaurant at this specific Premises and use the Checkersrallys system there. The franchisee cannot operate the business or use the Checkersrallys system at any other location without prior consent from Checkersrallys. Furthermore, the franchisee cannot relocate the restaurant without Checkersrallys's approval. This ensures that Checkersrallys maintains control over where its brand is represented and that each location meets its standards.

Checkersrallys's control over the location of its franchises is a common practice in the franchise industry. It allows the franchisor to protect its brand image and ensure that each location has the best chance of success. However, it also means that franchisees must work closely with Checkersrallys to find a suitable location and may not have complete autonomy in choosing their site.